Popular YouTuber says, "There's a Massive Shift Going On" in the RV Industry

After years of focusing on luxury rigs, the RV industry is going cheap. At least, that’s what one YouTuber claims in a recent video.

Josh the RV Nerd uses some compelling data to support his claims. And looking at it, it’s hard to deny that shift is real.

But what does that mean for the average buyer or seller? We’re looking into his claims today to find the truth.

Let’s check it out!

Is the RV industry moving toward small, cheap RVs?

YouTuber Exposes RV Industry Shift to Small, Cheap RVs

Josh, the RV Nerd from Bish’s RV, is recognized as an industry expert on YouTube. In his recent video following the annual Dealer Open House, he’s got some hot takes on market trends. He dives into what’s shaping up to be the driving force behind more cheap RVs coming onto the lot.

Over the last year, there’s been a shift in prices for used rigs. Instead of costs going up, which has been the case for several seasons, they’re going down. At the same time, people are paying less for newer vehicles. With cheaper RVs arriving on the market, buyers aren’t seeking out older models to save cash.

Instead of looking for something new to you, you could be purchasing something from the current year. And, for many buyers, that’s an attractive offer. As the pre-owned stock on the lot rises, costs go down to make room for new vehicles.

But with the industry churning out cheap RVs, it’s hard to say whether folks are willing to go used.

Dive Deeper: Watch Josh’s video statement.

Why Is the Industry Shifting to Cheaper RVs?

It’s no secret that cheap RVs are the current trend in the industry. Exactly why this is happening takes a bit more looking to discover the answer. Several factors impacting buyers and lenders have manufacturers scrambling to adapt.

Over the last few years, the number of rigs sold by dealers climbed quickly. In 2021, for example, over 600,000 new campers shipped out to lots. Along with those numbers, prices rose as supply and demand shifted. Buyers waited months for their new rigs, which drove their costs through the roof.

But, according to data from July 2023, higher borrowing costs and reduced demand changed the course of the industry.

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The Federal Reserve rate hikes also make financing a new vehicle more expensive than in the past. Instead of near zero, they’ve climbed steeply since March 2022 to between 5% and 5.25%. RV loans cost consumers even more, around 10%, and that’s got analysts concerned.

This year, new orders sit at around half of what they did just a few years ago.

One way manufacturers are responding is by creating new, cheaper models of popular RVs. They compete with pop-up tents, used rigs, and other brands for a smaller slice of the camping pie.

How Is the RV Industry Cutting Costs in Their New Units?

A buzzword in the new trends toward cheap RVs is decontenting. Instead of putting lower-end features into their small rigs, manufacturers simplify or remove them altogether. By taking out specific amenities, they can focus on those they leave in. Their end goal is to attract buyers who couldn’t purchase more expensive versions of the vehicle.

Brands also focus on smaller units with core functionality rather than all the bells and whistles. If a previous model year featured luxury trims and perks, they’re taking things back to basics and focusing on quality. Think camping versus glamping in your fifth wheel.

Several manufacturers are offering more entry-level models priced to sell than ever before. And while they might’ve been given a smaller slice of the advertising budget, this year, they’re the focus.

Many are also releasing lines like the Keystone Classics Collection. Each of the RVs in this cheap offering features fewer accessories without compromising quality. Makers aren’t worried about blowing your mind with a new entertainment system. They just want you to buy.

Grab some helpful tips: How to Choose and Buy an RV.

Advantages of Smaller, Cheaper RVs

RV buyers looking for cheap options are flocking to small rigs, and for good reasons. One of the most obvious is that they’re a lighter alternative to big towables. All vehicle costs are rising, and most folks looking to get into the lifestyle don’t have large trucks. Many smaller campers don’t require massive towing capacity, so your SUV will do rather than needing an F-350.

More affordable price tags also frequently translate to more affordable payments. Sometimes, you can even get them without financing and purchase them outright. This can make a significant difference in your bottom line from month to month.

Finally, the costs of operating a smaller RV are cheaper compared to large, luxury rigs. You’ll save money on fuel and sites that won’t accommodate bigger campers. You’ll enjoy heading out to hard-to-reach parks and recreation areas you couldn’t access in a larger motorhome.

We wondered: Is RVing Still The Cheapest Way To Vacation?

How Will the Shift to Cheaper RVs Affect Quality?

For many RV owners, cheap rigs mean a decline in quality. But if you’ve purchased any camper in the last few years, you know that’s already happened. New owners have said for years that what’s coming off the manufacturing line is worse than ever.

The biggest issue seems to be quality control. There’s almost no national oversight in the industry. So, brands are responsible for verifying that what they make is up to snuff. However, it’s something they’ve neglected.

Everything from electrical systems to plumbing is literally falling apart on your way home from the dealer. But it gets worse. Warranty repairs take time, and you’ll likely lose months of use waiting to get your rig fixed.

That said, it’s unlikely that quality will decline with cheaper rigs since it’s already at rock bottom.

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What Is the Alternative to Buying a New, Cheap RV?

With all this in mind, is it even worth buying a cheap RV? It all depends on your goals.

If you’re just trying to replace an aging rig with something new, you’re better off staying put. Over time, you’ve probably learned how to work with the challenges of your vehicle. And there are many DIY upgrades you can make that are a better investment of time and money.

Some of the easiest include replacing mattresses, upgrading to LEDs in your lighting systems, and replacing kitchen appliances. Other upgrades that’ll add functionality to your RV are switching to lithium batteries, adding solar panels, and installing a wireless backup camera.

Even with all of the crappy, cheap RVs on the market, a few makers are bucking the trend. Brands like Grand Design have lower-cost options and a commitment to quality, and they aren’t alone.

We recommend spending time in owners’ forums to find out which new options have good reviews. Other users are always your best resource when it comes to purchasing a new rig.

We researched for you: Where Should I Sell My RV?

Affordable Options Are Out There For the Taking

It’s easy to look at the cheap RV trend in the industry and think that they’re just throwing in the towel. Smaller rigs with fewer amenities might not be what you think about when you imagine life on the road.

But for folks looking for a simpler camping experience, it might be enough to get them through the door. And, after a tough year, that’s what manufacturers are hoping for.